MIRA INFORM REPORT

Report Date :

04.07.2014

IDENTIFICATION DETAILS

Name :	EVEREST INDUSTRIES LIMITED
Registered Office :	Gat No.152, Lakhmapur, Taluka Dindori, Nashik – 422202, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	03.04.1934
Com. Reg. No.:	11-002093
Capital Investment / Paid-up Capital :	Rs.151.947 Millions
CIN No.: [Company Identification No.]	L74999MH1934PLC002093
TAN No.: [Tax Deduction & Collection Account No.]	PNEE01437C
PAN No.: [Permanent Account No.]	AAACE7550N
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturing and Trading of products like Roofing Products, Ceilings, Walls, Flooring, Cladding, Doors, Pre-engineered Steel Buildings and Other Building Products and Accessories
No. of Employees :	840 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 11000000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There seems a drastic dip in the profitability of the company during 2014. However, net worth of the company is satisfactory. General financial position of the company is good. The ratings also takes into consideration the company’s established position in the domestic AC roofing market. Trade relations are reported as fair. Business is active. Payments terms are reported to be usually correct. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

N E W S

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating=A+
Rating Explanation	Adequate degree of safety. It carry low credit risk.
Date	26.02.2014

Rating Agency Name	CRISIL
Rating	Short Term Rating=A1
Rating Explanation	Very strong degree of safety and carry lowest credit risk.
Date	26.02.2014

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DENIED

Management Non Co-operative (91-2557-250462)

LOCATIONS

Registered Office/ Factory:	Gat No. 152, Lakhmapur, Taluka Dindori, Nashik – 422202, Maharashtra, India
Tel. No.:	91-2557-250375/ 462
Fax No.:	91-2557-250376
E-Mail :	compofficer@everestind.com info@everestind.com
Website :	http://www.everestind.com
Head/ Corporate Office :	Genesis, A-32 Mohan Co-operative Industrial Estate Mathura Road New Delhi – 110044, India
Tel. No.:	91-11-41731951/ 52
Fax No.:	91-11-46566370
E-Mail :	careers@everestind.com info@everestind.com
Factories :	Kymore Works Everest Nagar, P.O. Kymore, District Katni – 438880 Madhya Pradesh, India Kolkata Works ‘Everest House’ 1, Taratola Road, Garden Reach, Kolkata – 700024, West Bengal, India Podanur Works Podanur P O., Coimbatore – 641023, Tamilnadu, India Bhagwanpur Works Khasra Nos.158 and 159, Village Lakesari, Pargana Bhagwanpur, Tehsil Roorkee, District Haridwar – 247661, Uttarakhand, India Somnathpur Works Z5, IID Centre, Somnathpur, Tehsil Remuna, District. Baleshwar – 756019, Odisha, India Ranchi Works Sarwal Namkum, Opposite Tola – Charna Bera Ranchi – 834010, Jharkhand, India

DIRECTORS

AS ON 31.03.2014

Name :	Mr. Aditya Vikram Somani
Designation :	Chairman
Date of Birth	04.11.1973
Qualifications	MBA, PGDM, M.Com.
Date of Appointment	07.11.2005
Name :	Mr. M. L. Gupta
Designation :	Vice Chairman
Name :	Mr. Sandeep Junnarkar
Designation :	Director
Name :	Mr. Madan Lal Narula
Designation :	Director
Date of Birth	25.10.1940
Qualifications	B.Sc. Engineering (Electrical)
Date of Appointment	30.01.2008
Name :	Mr. Amitabh Das Mundhra
Designation :	Director
Name :	Mr. B. L. Taparia
Designation :	Director
Date of Birth	05.07.1950
Qualifications	B.Com, LL.B., F.C.S.
Date of Appointment	10.5.2013
Name :	Ms. Bhavna G. Doshi
Designation :	Director
Name :	Mr. Manish Sanghi
Designation :	Managing Director
Date of Birth	04.02.1963
Qualifications	08.07.2002
Date of Appointment	B.E. (Mech.), PGDM (IIM-A)
Name :	Mr. Y. Srinivasa Rao
Designation :	Executive Director (Operations)
Qualifications	B.Sc. Engg. (Mechanical)

KEY EXECUTIVES

Name :	Mr. Neeraj Kohli
Designation :	Company Secretary

SHAREHOLDING PATTERN

As on 31.03.2014

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	7520470	49.49
Sub Total	7520470	49.49
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	7520470	49.49
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1300631	8.56
Financial Institutions / Banks	225	0.00
Central Government / State Government(s)	200	0.00
Insurance Companies	187	0.00
Foreign Institutional Investors	1275	0.01
Sub Total	1302518	8.57
(2) Non-Institutions
Bodies Corporate	1095845	7.21
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	3299300	21.71
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1463512	9.63
Any Others (Specify)	513020	3.38
Non Resident Indians	176062	1.16
Trust & Foundation	336958	2.22
Sub Total	6371677	41.93
Total Public shareholding (B)	7674195	50.51
Total (A)+(B)	15194665	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	15194665	0.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Trading of products like Roofing Products, Ceilings, Walls, Flooring, Cladding, Doors, Pre-engineered Steel Buildings and Other Building Products and Accessories

Products :

Products Description	Item Code No.
As Bestos Cement Corrugated Sheets	6811-10-00
Fibre Cement Sheets Other Than Corrugated	9811-20-90
Prefabricated Steel Building	9406-00-19

GENERAL INFORMATION

No. of Employees :

840 (Approximately)

Bankers :

· State Bank of India

· ICICI Bank Limited

· Axis Bank Limited

· HDFC Bank Limited

· Kotak Mahindra Bank Limited

· DBS Bank Limited

Facilities :

SECURED LOANS	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
Long Term Borrowings
Term Loans from Banks	513.270	591.020
Short Term Borrowings
Loans from Banks
Cash Credit	439.211	338.894
Working Capital Demand Loan	500.000	0.000
Buyer’s Credit	716.337	613.118
Total	2168.818	1543.032

NOTES:

LONG TERM BORROWINGS

External Commercial Borrowing (ECB) from ICICI Bank Limited of Rs.60.100 Millions (previous year Rs.163.140 Millions) is secured by a first pari-passu charge over all the immoveable and moveable fixed assets other than the immoveable fixed assets situated at Podanur plant and second pari-passu charge on all current assets of the Company. The ECB is repayable in 12 half yearly instalments of USD 1,000,000; the last instalment is due in July 2014. The rate of interest is Libor+1.03% per annum.

External Commercial Borrowing (ECB) from DBS Bank Limited of Rs.536.640 Millions (previous year Rs.619.200 Millions) is secured by first pari-passu charges on all the immoveable and movable fixed assets other than the immoveable fixed assets situated at Podanur and Kolkata and second pari passu charge on all present and future current assets of the Company. The ECB is repayable in 15 quarterly instalments of USD 800,000; the last instalment is due in April 2017. The rate of interest is 10.40% per annum.

Term Loan from HDFC Bank Limited of Rs.179.550 Millions (previous year Rs. Nil) to be secured by exclusive charge over the immovable property situated at Noida. The loan is repayable in 20 quarterly instalments of Rs.9.450 Millions; the last instalment is due in November 2018. The rate of interest is 12.00% per annum.

SHORT TERM BORROWINGS

Loans from banks are secured by a first pari-passu charge by way of hypothecation of stocks, present and future, book debts and receivables and second pari-passu charge on all fixed assets, land and buildings both present and future, except land and building situated at Kolkata plant.

Banking Relations :	--
Financial Institution :	· 3i Infotech Trusteeship Services Limited 3^rd to 6^th Floor, International Infotech Park, Tower No.5, Vashi Railway Station Complex, Vashi, Navi Mumbai – 400703, Maharashtra, India
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Gurgaon, Haryana, India
Associate company :	Everest Building Solutions Limited (upto 23 March, 2014) – Has not commenced operations
Subsidiary companies :	· Everest Building Products, Mauritius (w.e.f. 9 September, 2013) – Has not commenced commercial operations · Everestind FZE, United Arab Emirates (UAE) (w.e.f. 18 December, 2013) –subsidiary of Everest Building Products – Has not commenced operations
Enterprise exercising significant influence :	Falak Investment Private Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
17000000	Equity Shares	Rs.10/- each	Rs.170.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15194665	Equity Shares	Rs. 10/- each	Rs.151.947 Millions

Of the above:

15,000 (previous year 15,000) equity shares are allotted as fully paid up pursuant to a contract without payment being received in cash 13,350,020 (previous year 13,350,020) equity shares are allotted as fully paid up by way of bonus shares by capitalisation of general reserve

The Company has one class of equity shares having a par value of Rs.10 each. Each shareholder is eligible for one vote per share held.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	151.947	151.873	151.127
(b) Reserves & Surplus	2793.324	2745.852	2343.995
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1)+(2)	2945.271	2897.725	2495.122
(3) Non-Current Liabilities
(a) long-term borrowings	513.270	591.020	155.610
(b) Deferred tax liabilities (Net)	283.175	245.656	238.959
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	60.788	75.758	75.829
Total Non-current Liabilities (3)	857.233	912.434	470.398
(4) Current Liabilities
(a) Short term borrowings	1655.548	952.012	551.056
(b) Trade payables	1228.610	1089.117	731.632
(c) Other current liabilities	1291.600	958.913	774.213
(d) Short-term provisions	296.996	202.428	187.130
Total Current Liabilities (4)	4472.754	3202.470	2244.031
TOTAL	8275.258	7012.629	5209.551
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2691.476	2065.026	2190.432
(ii) Intangible Assets	125.913	48.500	12.127
(iii) Capital work-in-progress	610.480	371.146	78.801
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	6.337	0.245	0.245
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	745.053	432.937	332.648
(e) Other Non-current assets	2.905	1.422	20.957
Total Non-Current Assets	4182.164	2919.276	2635.210
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	2420.884	2541.660	1579.835
(c) Trade receivables	807.081	523.495	417.047
(d) Cash and cash equivalents	251.430	528.531	330.316
(e) Short-term loans and advances	608.216	487.428	241.763
(f) Other current assets	5.483	12.239	5.380
Total Current Assets	4093.094	4093.353	2574.341
TOTAL	8275.258	7012.629	5209.551

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from operations	10352.516	10141.329	8868.612
		Other Income	123.369	87.525	177.903
		TOTAL (A)	10475.885	10228.854	9046.515
Less	EXPENSES
		Cost of materials consumed	5745.939	5902.861	4750.491
		Purchases of stock-in-trade	280.556	159.310	136.177
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	7.052	(443.792)	11.839
		Employee benefits expense	969.649	920.970	797.472
		Other expenses	2950.780	2624.167	2365.026
		TOTAL (B)	9953.976	9163.516	8061.005
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		521.909	1065.338	985.510
Less	FINANCIAL EXPENSES (D)		125.690	55.799	44.375
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		396.219	1009.539	941.135
Less	DEPRECIATION/ AMORTISATION (F)		267.204	220.524	200.816
	PROFIT BEFORE TAX (E-F) (G)		129.015	789.015	740.319
Less	TAX (H)		37.519	264.018	212.698
	PROFIT AFTER TAX (G-H) (I)		91.496	524.997	527.621
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1792.385	1453.151	1101.481
Less	APPROPRIATIONS
		Transfer to General Reserve	9.190	52.500	53.000
		Dividend	37.987	113.905	105.789
		Tax on Dividend	6.456	19.358	17.162
	BALANCE CARRIED TO THE B/S		1830.248	1792.385	1453.151
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Goods Exported	590.485	561.101	566.312
	TOTAL EARNINGS		590.485	561.101	566.312
	IMPORTS
		Raw Materials	1883.405	2414.059	1657.332
		Stores & Spares	15.226	13.678	10.243
		Capital Goods	78.728	1.357	35.042
		Others	1.609	58.121	88.126
	TOTAL IMPORTS		1978.968	2487.215	1790.743
	Earnings Per Share (Rs.)		6.02	34.70	34.96

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	0.87	5.13	5.83
Net Profit Margin (PBT/Sales)	(%)	1.25	7.78	8.35
Return on Total Assets (PBT/Total Assets}	(%)	1.68	11.88	14.43
Return on Investment (ROI) (PBT/Networth)		0.04	0.27	0.30
Debt Equity Ratio (Total Debt /Networth)		0.74	0.53	0.28
Current Ratio (Current Asset/Current Liability)		0.92	1.28	1.15

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	151.127	151.873	151.947
Reserves & Surplus	2343.995	2745.852	2793.324
Net worth	2495.122	2897.725	2945.271
long-term borrowings	155.610	591.020	513.270
Short term borrowings	551.056	952.012	1655.548
Total borrowings	706.666	1543.032	2168.818
Debt/Equity ratio	0.283	0.532	0.736

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	8,868.612	10,141.329	10,352.516
		14.351	2.082

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	8,868.612	10,141.329	10,352.516
Profit	527.621	524.997	91.496
	5.95%	5.18%	0.88%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	----------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------
26]	Buyer visit details	----------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMIC OVERVIEW

The global economy is witnessing gradual and sustained revival. Aided by strengthened global activity and world trade in the second half of the year, global GDP recorded a 3% growth in 2013. With sustained strengthening in the US and core Euro region, global economy is expected to sustain momentum and record a stronger GDP growth of 3.6% in 2014. Emerging and developing economies are expected to benefit from developed economies in form of increased export opportunities.

Indian economy passed through one of its toughest phases in the financial year 2013-14 (FY 14). High inflation, weak demand, depreciating currency, rising cost of industrial input, tight liquidity with high cost of borrowing – all this took the consumer and investment sentiments to a new low. At 4.7%, the country recorded its second successive year of sub 5% GDP growth.

In light of weak growth numbers, the government and regulators pushed ahead with few reform measures and clearances of projects in the second half of FY14. With the hope of a stable government post ensuing general election in May 2014 coupled with a stronger global economy, Indian economy is likely to post better growth numbers in FY15.

INDUSTRY OVERVIEW

HOUSING SEGMENT

Planning Commission’s Working Group on Rural Housing for XIIth Plan estimated the number of rural houses to grow at a Compounded Annual Growth Rate (CAGR) of 2.09% while rural households were projected to grow at 2.1%. It further estimated the rural housing shortage to be at 43.67 million units for the plan period 2012-2017. Reflecting the economic well being of rural population, Pucca houses are estimated to grow at a much faster rate of 4% CAGR over 2.9% CAGR for the semi Pucca houses.

Rural infrastructure, including dwelling units, is a key social priority of the government. This will help in sizeable asset creation in terms of rural housing. With the benefit of economic growth now getting visible in the rural areas, disposable income and aspiration quotient of rural India is on the rise. The huge housing deficit in rural India, with a majority of Kaccha houses, offers tremendous opportunity of sustained growth of new age construction practices as well as building products. Looking ahead, with the ambitious 12th Five-year plan in place along with a stable government of the country, the income of the under-privileged section is expected to go up. This should translate into an increased demand for roofing products such as Fibre cement roofing sheets.

National Housing Bank estimates the urban housing shortage to be at 18.78 million. Rapid urbanization coupled with steady migration of people from rural to urban areas will continue to expand growth of urban housing and the demand for rapid construction methods to meet the demand.

INDUSTRIAL SEGMENT

Growing at a CAGR of 10% over the past five years, the per capita consumption of structural steel and PEB in India has reached about 6.2 Kgs now. Driven by large investments in industry and infrastructure, Steel Structures segment has witnessed a higher growth as compared to the Indian steel industry as well as the Indian construction industry. Demand for structural steel from building segments in India is less than 5% as compared to 65-70% in USA and 35-40% in UK.

Penetration of PEB in large traditional segments like power, chemicals, cement etc. is increasing. Also Small-scale industries, are recognizing the advantages of using PEB over conventional concrete buildings to control cost and time overruns.

The Rs.560 billion Indian warehousing industry is growing at over 10% annually. Modern ware housing accounts for only 15% of the market. With the arrival of organized players, modern warehousing is estimated to grow at a faster rate of 20-25% over the next 5 years.

ROOFING

INDUSTRY OVERVIEW

Between the last two census surveys, the total rural housing stock has increased from 177.500 Millions units in 2001 to 220.600 Millions units in 2011. The total share of pucca roofing and RCC has increased from 45.5% in 2001 to 61.2% in 2011 With improvement in rural income (from farm and non-farm avenues), government thrust on rural housing and improving disposable income; customers are migrating from kutcha roofs to more durable and convenient pucca roofing solutions. Over the years, the use of clay tiles has been declining due to the non-availability of raw material and a rising preference of superior roofing material. Moreover, the pucca fibre cement roofing is very economical and costs just one-third of the cost of an RCC ceiling slab.

The fibre cement roofing industry in India has a capacity of 58 lac MT per annum and comprises of 6 national brands and 14 regional brands.

INDUSTRY OVERVIEW

BOARDS AND PANELS

The Indian boards industry comprises of traditional products like plywood, laminates, and particle boards and new age modern building products like fibre cement boards and gypsym. The traditional market size is estimated at Rs.200000.000 Millions and the new age modern building products market size is estimated to be Rs.18000.000 Millions. The boards industry is highly fragmented and is currently dominated by plywood, laminate and particle boards. The inability of wood based products to meet diverse needs of customers such as resistance from fire, moisture, dampness and termites has increased the demand for modern building materials like Fibre Cement Boards and Gypsum Boards which address specific needs in construction.

FINANCIAL HIGHLIGHTS

· The building products division’s revenue declined by 1.3% to Rs.7589.000 Millions in 2013-14 despite a realization growth of 3.2%. This was on account of sluggish demand due to high inflation and cost of construction throughout the country.

· The operating profit of the division decreased by 59.0% from Rs.876.000 Millions in previous year to Rs.359.000 Millions during the year owing to increase in raw material costs, particularly imported fibre, employee cost and freight cost.

OUTLOOK

With expected revival in economic activity, housing construction activities should also gain momentum. On the back of increasing rural income, rural housing growth is expected to accelerate over coming quarters.

With the right building solutions and products, deeper market penetration and strong customer equity, Everest Industries is positioned to benefit from the growing demand.

STEEL BUILDING SEGMENT

INDUSTRY OVERVIEW

Steel buildings are fast emerging as an effective alternate to traditional brick and mortar ones in India. Offering advantages like speed and cost of construction, robustness and energy efficiency, it is the preferred method for industrial construction. Popular as Pre-Engineered Buildings (PEBs), it has widespread presence across North America and European countries. Compared to conventional construction, PEBs save construction time by 30-50%, are 100% customizable, highly flexible, durable and weather proof.

The Indian PEB market size is estimated to grow at a CAGR of 26.6%, from Rs.52970.000 Millions in 2012 to Rs.136120.000 Millions by 2016 The PEB industry, in early years of its introduction in India, recorded rapid growth. However, recent economic slowdown has impacted its growth momentum momentarily.

OUTLOOK

Central government’s fast tracking of approvals on infrastructure and industrial projects during the second half of FY 14 are likely to boost the PEB industry. Construction activity, including those of industrial and commercial buildings, is likely to gain momentum over coming quarters. With a clear shift towards PEBs from conventional structures, the PEB segment would grow faster. With newly added capacities at a strategic location and increasing buyer interest in this building technique, the division is poised for rapid growth.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10415557	30/04/2014 *	619,200,000.00	DBS BANK LTD.	CAPITAL POINT, BABA KHARAK SINGH MARG,, CONNAUGHT PLACE, NEW DELHII - 110001, INDIA	C03899754
2	10369338	30/04/2014 *	100,000,000.00	DBS BANK LTD.	CAPITAL POINT, BABA KHARAK SINGH MARG,, CONNAUGHT PLACE, NEW DELHII - 110001, INDIA	C03861275
3	10303259	30/04/2014 *	420,000,000.00	KOTAK MAHINDRA BANK LIMITED	7TH FLOOR, AMBADEEP BUILDING, 14,, K G MARG,, NEW DELHI - 110001, INDIA	C03785508
4	10133157	30/04/2014 *	750,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA	C03876174
5	10127598	03/11/2008	492,000,000.00	3I INFOTECH TRUSTEESHIP SERVICES LIMITED	3RD TO 6TH FLOOR, INTERNATIONAL INFOTECH PARK,, TOWER NO.5, VASHI RAILWAY STATION COMPLEX, VASHI, NAVI MUMBAI, MAHARASHTRA - 400703, INDIA	A49787617
6	10127595	30/04/2014 *	492,000,000.00	3I INFOTECH TRUSTEESHIP SERVICES LIMITED	3RD TO 6TH FLOOR, INTERNATIONAL INFOTECH PARK,, TOWER NO.5, VASHI RAILWAY STATION COMPLEX, VASHI, NAVI MUMBAI, MAHARASHTRA - 400703, INDIA	C03918497
7	10127596	30/04/2014 *	980,000,000.00	ICICI BANK LTD.	LANDMARK, RACE COURSE CIRCLE,, ALKAPURI,, BARODA, GUJARAT - 390015, INDIA	C03919651
8	10080917	10/05/2012 *	980,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJ ARAT - 390015, INDIA	B40714255
9	10011604	30/04/2014 *	250,000,000.00	AXIS BANK LIMITED	2ND FLOOR, STATESMAN HOUSE, 148, BARAKHAMBA ROAD, NEW DELHI - 110001, INDIA	C04675906
10	80014472	28/05/2014 *	550,000,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, JAWAHAR VYAPAR BHAWAN,, 1, TOLSTOY MARG, NEW DELHI, DELHI - 110001, INDIA	C04671111

FIXED ASSETS:

· Land (Freehold/ Leasehold)

· Building (On Freehold Land / On Freehold Land)

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipments

· Leasehold Improvements

· Roads

· Computer Software

· Technical Knowhow

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.72
UK Pound	1	Rs.102.45
Euro	1	Rs.81.54

INFORMATION DETAILS

Information Gathered by :	PDT
Analysis Done by :	DIV
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	NO
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NB		NEW BUSINESS

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.